Enterprises today cannot collaborate in result value and quality chains

Business collaboration is an unsolvable problem of 20^th century enterprise management used today. Organizations, processes, systems, accounts, reporting and other structures laid over collaborating businesses conflict and employ inconsistent definitions and methods. The problem is addressed by laying other structures over the businesses for data reconciliation, information management, or a contrived multi-business process. This does not enable real collaboration, but allows reporting on what is occurring across the collaborating enterprises.

Business collaboration is impossible until businesses are managed

By definition business collaboration requires that first each business that is to collaborate is managed. The business is defined as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. Each collaborator must manage the results of value and quality produced by the business, the capital of specific investment and operating costs utilized in the business, and the costs and effectivness of performance that produces each specific result.

Business management enables collaboration and management of shared value

When each collaborator manages the economic output results produced, capital investments implemented as solutions, and the performance of each solution to produce a result following 21^st century business management conventions, definitions, and standards, there can be real business collaboration. A result value and quality chain can be linked across businesses to produce each result where the best value and quality can be achieved, eliminate duplicated results, and control capital utilization to produce the maximum value-added in the final customer result from the chain. [more...]

Business processes and information systems laid over the business today prevent management of costs, value, and quality

20^th century management lays monolithic business processes and information systems over the business to manage business performance. Results produced by the business are defined as performance and are not specifically identified and managed as a set or chain leading to final results that go to the customer. This prevents to business from managing the cost of producing a result, the result value, the result quality, and the result value added. Much time and money is wasted trying to reconcile ill-defined processes and systems for business collaboration, since result chains cannot be organized or managed.

Rule No. 2 of the 10 rules of 21^st century business management: Generate profits from a chain of managed value and quality

21^st century business management organizes the capital investments available to be utilized in business performance, performance producing each result, and business output results as value-quality chains. This allows capital solutions to be utilized in cost-effective performance to produce value-quality results leading to high-value and high-quality customer results.

Customer results are outputs from managed result value-quality chains

Business management redefines business processes and information systems as process solutions by the results produced and manages each result in the result value-quality chain starting from input results from the supplier, result value added along the enterprise result chain, and the final result to the customer. Result value-added is managed across the chain to contribute directly to the profit result. The business can integrate and manage the chain to help suppliers meet enterprise input needs and to add more value by meeting customer needs. [more...]

Management consultants fail to address the unsolvable problems faced by all enterprises today

Most of the financial institutions, corporations, and other enterprises that have management problems retain management consultants for advice and management improvements. No current management consultant has the outlook or capability to help their client eliminate the one problem that holds back all enterprises and causes unsolvable management problems, the failure to manage the business.

All consultants today promote dead-end 20^th century enterprise management

Much change management consulting has been packaged into business services provided by hired staff, rather than professional problem solving for measured improvement. Recent books and media publicity show cases where the enterprise did not receive the professional services expected from management consultants. All consulting services today promote obsolete 20^st century enterprise management to lay new or improved organization, account, system, and other management structures over the business.

A new business management consulting model is available to restore professionalism and prevent business problems

A 21^st century business management consulting model is now available to help enterprises organize and menage the business to eliminate problems by providing:

• Services based on organizing the business for 21^st century management
• A method for the enterprise to lead and participate properly in business change
• A clear framework to manage the scope and participation for both parties
• Methods and tools that both the enterprise and consultant understand and use
• Planned and measured value of the consultant and success of the enterprise

The model builds enterprise capabilities to manage the business and business change, and focuses consultants on high-value professional results the client enterprise cannot achieve on its own.

The business management consulting model organizes services within an enterprise, market, industry, or economy business structure

The 21^st century business management consulting model scopes all services within a business structure, and extends the structure to cover the complete enterprise, enterprise businesses within a corporation business, and businesses within markets, industries, and economies. All services provide a measurable result value-added return to the client enterprise and service users. [more...]

20^th century enterprise management cannot optimize operations in the capital solutions that produce output results

The 20^th century enterprise today is organized, but the business is not organized. Capital investments in the business are not organized to implement and utilize capital solutions as part of the business. Therefore, business operations in the capital utilized as specific capital solutions, the performance of the solution to produce specific output results, and results produced cannot be managed. If business operations are not managed, performance cannot be optimized to produce high-quality results and the result value-added that contributes to the profit result.

Rule No. 5 for 21^st century business management "Operate to optimize operations, result value-added, and the profit result"

The ten rules for 21^st century business management help each enterprise to understand how well positioned they are to compete with the coming 21^st century business environment. Rule No 5: "Operate to optimize operations, result value-added, and the profit result" establishes an enterprise routine of managing and supporting capital solutions, managing the utilization of a solution in performance to produce a result, managing the results produced, and managing the return on investment and contribution to profits over time.

21^st century business management manages cost-effective performance to produce value-quality results and profits

Capital is managed to capture the cost of development or improvement, to ensure solutions are qualified to produce the desires results, to capture the result value created to determine the return of investment and the continuing solution worth, and to optimize the investment, qualifications, capacity, and reliability of each solution.

Performance, in the utilization of a solution to produce a result, is managed to meet expectations in performance, to work together with other solutions to produce the same result, and to optimize the cost, effectiveness, capacity utilization, and uncertainty of each solution utilized.

Results are managed to utilize integrated solutions to reach result goals, to create result value greater than total performance costs for result value-added, to produce a high-quality result, to produce the expected volume of results on time, and manage the risk of a poor result.

Results are managed with the capital solutions utilized and performance as the routine, High-value results are periodically optimized by managing the volume, value, quality, goals, and risk of results by optimizing the capital solutions utilized and the performance of the solutions. Optimizing ensures that performance is cost-effective to produce high value-quality results, to return investments in capital solutions, to manage and maintain capital worth, and to provide the result value-added that contributes to the profit result. [more...]

Effective business collaboration is prevented by 20^th century management

Each enterprise today lays a different collection of structures over the business, and each structure defines the enterprise differently, and captures inconsistently-defined data against the various structures. The 20^th century method of business collaboration is for businesses to lay the same process, information system, or data reconciliation and information reporting structure over the business. This is very expensive and still does not provide a satisfactory solution, since none of the collaborators actually organizes or manages the business.

Rule No. 9 of 21^st century business management: Collaborate to maximize shared value and minimize shared costs

Effective business collaboration and outsourcing requires that the business of each collaborator be managed. If the business is managed, there are common definitions for value creation, performance costs, quality levels, and other business measures that can be managed consistently for each business and across businesses. 21^st century business management requires that businesses be managed to enable collaboration by maximizing shared value and minimizing shared costs.

One simple business structure is used by all businesses to enable collaboration and integration

21^st century business management organizes the business as one consistent structure to define the results, capital investments, and capital utilization in performance to produce results. Results produced by the business are defined to know result volumes produced, result quality, result value, result costs, and result value-added across the business. The capital investments in the business are defined as capital solutions to know investment amounts and unamortized balances, investment returns, and capital solution worth. Capital solutions utilized to produce each result are defined to know performance costs incurred against the result and the value added to the result. The business structure can be managed within a business or across businesses to create result value-quality chains where each result is produced for the highest value and quality for the lowest cost. [more...]

Conventions, definitions, and standards used in 20^th century enterprise management are inconsistent and confusing

20^th century enterprise management does not organize the natural business or apply common-sense management, as we do in our personal business. Arbitrary contrived structures are laid over the business. Each structure has its own set of conventions, definitions, and standards. Added together this produces an inconsistent hodge-podge of conventions, definitions, and standards that are applied separately for organization, planning, processes and systems, accounting, administration, IT architectures, performance management, reporting, and other parts of enterprise management.

Rule No 10 of 21^st century business management: Employ 21^st century business management conventions and standards

The 21^st century business must avoid the problems inherent in 20^th century enterprise management. This is done by organizing the business for 21^st century management. 21^st century business management uses one set of conventions, definitions, and standards that are applied to the actual business and used for all management organization, planning, directing, control, and reporting. Common conventions, definitions, and standards enable business collaboration and education, solutions, and services that can be applied to any business.

One consistent set of conventions, definitions, and standards define 21^st century business management

21^st century business management is guided by Result-performance Management (R-pM) knowledge and procedures. 21^st century business management conventions, definitions, and standards are defined, updated, and maintained in the R-pM Business Management Toolkit to support the organization and management of any business. The conventions, definitions, and standards can be followed by any education institution, solution developer, or service provider to meet the needs of any 21^st century business. [more...]

The 21^st Century Business Management Consulting Model organizes and manages the business to avoid unsolvable problems

Enterprises today do not manage their business. They manage the enterprise by laying organization, corporate plan, business process, account, and other structures over the business. Unsolvable problems occur due to clashes between overlaid structures and the actual business. The problems disappear when the actual business is organized to manage one business structure to integrate planning, directing, control, and reporting.

The 21^st Century Business Management Consulting Model guides the enterprise and consultants to organize the actual business and work together to achieve new business value in result value-quality chains, result-performance costing, strategic value management, result-performance optimization, project result management, human capability management, and other new concepts not possible with 20^th century enterprise management.

Opportunities are emerging for management consultants to support 21^st century business management

21^st century business management will ultimately replace obsolete 20^th century enterprise management, creating a demand for business management consultants. The knowledge and procedures for managing the business and the 21^st Century Business Management Consulting Model are provided and supported by Result-performance Management (R-pM). Business management and business management consulting sales and delivery are supported by R-pM websites, The R-M Business Management Toolkit, and other business management documentation. Professional management consultants and firms, who want to provide professional services that provide planned and measured enterprise benefit, will gain significantly by registering and practicing as 21^st century business management consultants. [more...]

20^th century management lays many organization and management structures over the business

20^th century enterprise management used today lays an organization structure over the business, instead of organizing the business. Since the business is not defined and organized it is impossible to integrate business organization and management in one business structure. Additional structures are laid over the business for planning, directing, control, and reporting, such as corporate plans, business processes, account charts, and scorecards. Different structures are used for investment planning and capital development. The proliferation of structures creates business and information complexity. Rigid overlaid structures conflict with the actual business causing the wide range of unsolvable 20^th century enterprise management problems.

21^st century business management integrates business organization, management, operations, and development

The actual business is organized for 21^st century business management. One business structure defines the current business and another defines the desired strategic business, so that management organization, planning, directing, control, and reporting are focused on the transition from the current to strategic business structure. Business operations are organized by result groups within the business structure to produce specific chains of results. Capital development is organized and managed through sub-sets of the structure for results and performance solutions to be developed. Projects are managed through a project business structure that organizes new results and solutions being developed and the capital assigned to the project as specific performance solutions. The actual strategic and current business structures are used for all organization, management, and governance needs. [more...]

Alignment is an unsolvable 20^th century enterprise management problem

Many books have been written offering solutions to the "alignment problem"; to align outsourced and internal solutions, processes and information systems with the business, capital development and business operations, customer solutions and the business, etc. Despite all the books the alignment problem continues unsolved today.

The business must be organized to provide the structure for alignment

The alignment problem cannot be solved because the business is not organized. Capital investments in the business are not identified as specific solutions. Solutions provided by other parties such as outsourced solution providers, business partners, or customers are not identified as solutions to be managed. The results produced by the solutions are not identified as a set of economic outputs from the business. Therefore, the business cannot be organized by aligning the internal and external solutions utilized in performance with the result produced.

Aligned solutions are integrated to produce results as part of the business

When the business is organized all capital invested in the business and all the outsourced, business partner, or customer solutions utilized are aligned and related to the results produced by the solution. The full set of solutions can then be integrated to work together to produce a specific result. The result manager is responsible to utilized the full set of internal and external solutions to ensure that the result is produced to meet solution performance expectations and achieve result goals. [more...]

The economic crisis shows the problems with 20^th century Business Process Management

Financial institutions and other corporations state that they have problems due the the failure to manage asset value, full operating costs, and the margins in outputs produced. This is part of the basic problem causing the economic crisis, failure to manage the business. One of the major features of 20^th century management, Business Process Management, prevents management of the business. Corporations must manage processes and cannot manage specific capital investments, output results produced, and the performance of capital solutions utilized to produce a result.

Business processes must be replaced by result chains to manage costs, value, and quality

Rule 2 for 21^st Century Management is to: Generate revenues from a chain of known value. The rule says to define the results produced and manage each result in the result value-quality chain; starting from input results from the supplier, proceeding through result value added along the corporate chain, and ending at the final result to the customer. Business processes used today do not allow this. The corporation must redefine business processes by identifying the results produced and the capital solutions utilized within the process to isolate the most cost-effective performance to produce the highest value-quality result. Results must be managed result by result within a set to produce the input result to the customer value-quality chain.

R-pM manages result value-quality chains as part of the managed business

Result-performance Management is the only method to manage the corporate business and result value-quality chains to know full costs to produce a result, the value of the result, the value-added by performance as well as capital solution qualifications, performance effectiveness, and the quality result by result in the chain. R-pM ensures that customers receive managed value and quality in goods and services from the corporation. [more...]